The fashion industry had its ups and downs in the pandemic, but one category flourished: resale. Resale platforms like Thredup and Vestiaire are seeing astonishing growth—the resale market is growing at a rate 11 times faster than traditional retail and should be worth $84 billion by 2030.
This week, we look at the threads of impact that resale has on the fashion industry.
🕶️Resale: fashion industry’s new mindset
Luxury fashion resale takes off in Asia [SCMP]
A fading social stigma - Celebrities such as Crazy Rich Asians actress Fiona Xie are helping turn pre-owned fashion from socially unacceptable to almost collectible. She partnered with the luxury resale site Vestiaire to sell luxury items from her personal wardrobe for charity.
Obstacles in Asian expansion - Product authenticity is a big challenge for Asian resellers, since China, Hong Kong and Singapore account for two-thirds of global counterfeit exports. To combat this, sellers have gotten wise to keep proof of purchase, by saving the original packaging and receipts.
Luxury brands reluctant to join resale market boom [WWD]
Not joining the bandwagon - Despite the trend, some luxury brands are reluctant to take ownership of the resale process, fearing that it could cannibalise sales of their full-price products and dent their image of exclusivity. Others are put off by the complexity of implementing circular models, and doubt its financial viability.
Quality control from third parties - Yet most luxury brands that got involved in the secondhand market have done so with the help of a third party. Mytheresa, Mulberry and Alexander McQueen, for instance, have all launched resale pilots this year in partnership with Vestiaire Collective that can help with sustainability and quality control.
China is using blockchain to save the resale market [Vogue]
An evolutionary war on counterfeit goods - Luxury reselling platforms, despite their in-house teams of authenticators, have seen an increase in sophisticated counterfeiting technology.
Using blockchain to build trust - As in the West, blockchain technology is seen as a more promising solution in China to increase customer trust. But even as some say that human interventions are still better than a computer’s, Secoo, a Chinese luxury reseller and retailer, is looking at blockchain tech to trace a luxury item’s source to check its authenticity.
🧐 Handpicked reads for the week
- Industry insights: 2021 resale report by Thredup
- Eradicating fast fashion with new tech for resellers
- Raking in $ from reselling sneakers: How a 16-year-old earns $30k a month
- Strategy: Fashion resale startups have more potential than profit